A washer-dryer combination can be purchased from a department store by making monthly credit card payments of $52.50 for two-and-a-half years. The first payment is due on the date of sale and interest is 21% compounded monthly.
(a) What is the purchase price?
(b) How much will be paid in installments?
(c) How much is the cost of financing?
(d) If an additional $8 per month is added to cover a service contract, what is the value of the service contract on the date of sale?